M/s Zila Parishad Employees Co-operative Credit Society Ltd., Raibareli V. Income Tax Officer-2, Raibareli

ITA 70/LKW/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 6711 (ITAT-LUCKNOW)
• Duration Of Justice: 5 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-07-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 01-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside

Judgement Text

I.T.A. NO.70/LKW/2019 ASSESSMENT YEAR:2013-14 1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH SMC, LUCKNOW BEFORE SHRI T. S. KAPOOR, ACCOUNTANT MEMBER ITA NO.70/LKW/2019 ASSESSMENT YEAR:2013-14 M/S ZILA PARISHAD EMPLOYEES CO- OPERATIVE CREDIT SOCIETY LTD., ZILA PARISHAD COMPOUND, RAEBARELI. PAN:AAAAZ 0282 G VS. INCOME TAX OFFICER-II, RAEBARELI. (APPELLANT) (RESPONDENT) O R D E R THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF LEARNED CIT(A)-2, LUCKNOW DATED 05/12/2018 PERTAINI NG TO ASSESSMENT YEAR 2013-14. 2. THE ONLY ISSUE INVOLVED IN THIS APPEAL RELATES T O THE SUSTENANCE OF THE DISALLOWANCE IN RESPECT OF THE INTEREST RECEIVED FR OM EMPLOYEES AMOUNTING TO RS.2,54,060/- AS INCOME FROM OTHER SOURCES U/S 8 0P(2)(A)(I) OF THE I.T. ACT. 3. I HAVE HEARD THE RIVAL SUBMISSIONS, CAREFULLY CO NSIDERED THE SAME ALONG WITH THE ORDERS OF THE TAX AUTHORITIES BELOW. I NOTED FROM THE PROVISIONS OF SECTION 80P(1) READ WITH SECTION 80P( 2)(A)(I) OF THE ACT THAT A CO-OPERATIVE SOCIETY ENGAGED IN CARRYING ON THE BUS INESS OF BANKING OR PROVIDING CREDIT FACILITIES TO ITS MEMBERS IS ENTIT LED FOR DEDUCTION. BEFORE APPELLANT BY SHRI AKHILESH PRATAP SINGH, F.C.A. RESPONDENT BY S HRI R. K. VISHWAKARMA, D. R. DATE OF HEARING 25/07/2019 DATE OF PRONOUNCEMENT 31 / 07 /201 9 I.T.A. NO.70/LKW/2019 ASSESSMENT YEAR:2013-14 2 ME, LEARNED A. R. OF THE ASSESSEE VEHEMENTLY CONTEN DED THAT WHATEVER INTEREST HAS BEEN RECEIVED BY THE CO-OPERATIVE SOCI ETY FROM ITS EMPLOYEES AMOUNTING TO RS.2,54,060/- ON THE CREDIT FACILITIES ADVANCES TO THESE EMPLOYEES ARE IN FACT RELATED TO THE INCOME EARNED BY THE CO-OPERATIVE SOCIETY PROVIDING THE CREDIT FACILITIES TO ITS MEMB ERS AND ALL THESE EMPLOYEES ARE THE MEMBERS OF THE CO-OPERATIVE SOCIETY. IT WA S FURTHER SUBMITTED THAT IN A SIMILAR ISSUE IN THE CASE OF THE ASSESSEE ITSE LF IN ASSESSMENT YEAR 2012- 2013, THE ISSUE WAS SET ASIDE TO ASSESSING OFFICER. 4. LEARNED D. R., ON THE OTHER HAND, RELIED ON THE ORDERS OF THE AUTHORITIES BELOW AND CONTENDED THAT THIS CASE CAN ALSO BE SET ASIDE TO THE ASSESSING OFFICER. 5. I HAVE HEARD THE RIVAL PARTIES AND HAVE GONE THR OUGH THE MATERIAL PLACED ON RECORD. THE HON'BLE TRIBUNAL, IN THE CAS E OF THE ASSESSEE ITSELF IN ASSESSMENT YEAR 2012-13, HAD SET ASIDE THE SIMILAR ISSUE TO ASSESSING OFFICER BY HOLDING AS UNDER: 3. I HAVE HEARD THE RIVAL SUBMISSIONS, CAREFULLY C ONSIDERED THE SAME ALONG WITH THE ORDERS OF THE TAX AUTHORITI ES BELOW. I NOTED FROM THE PROVISIONS OF SECTION 80P(1) READ WI TH SECTION 80P(2)(A)(I) OF THE ACT THAT A CO-OPERATIVE SOCIETY ENGAGED IN CARRYING ON THE BUSINESS OF BANKING OR PROVIDING CR EDIT FACILITIES TO ITS MEMBERS IS ENTITLED FOR DEDUCTION. BEFORE M E, LEARNED A. R. OF THE ASSESSEE VEHEMENTLY CONTENDED THAT WHATEV ER INTEREST HAS BEEN RECEIVED BY THE CO-OPERATIVE SOCI ETY FROM ITS EMPLOYEES AMOUNTING TO RS.73,365/- ON THE CREDIT FA CILITIES ADVANCES TO THESE EMPLOYEES ARE IN FACT RELATED TO THE INCOME EARNED BY THE CO-OPERATIVE SOCIETY PROVIDING THE CR EDIT FACILITIES TO ITS MEMBERS AND ALL THESE EMPLOYEES ARE THE MEMB ERS OF THE CO-OPERATIVE SOCIETY. LEARNED D. R. ON THE OTHER H AND RELIED ON THE ORDERS OF THE AUTHORITIES BELOW. IN THE INTERE ST OF JUSTICE AND FAIR PLAY TO BOTH THE PARTIES, I AM OF THE VIEW THAT THE MATTER BE RESTORED TO THE FILE OF THE ASSESSING OF FICER WITH THE DIRECTION THAT THE ASSESSING OFFICER SHALL LOOK INT O THE MATTER AFRESH. IN CASE THE ASSESSING OFFICER FINDS THAT T HE INTEREST EARNED BY THE CO-OPERATIVE SOCIETY FROM THE EMPLOYE ES RELATES I.T.A. NO.70/LKW/2019 ASSESSMENT YEAR:2013-14 3 TO THE MEMBERS OF THE CO-OPERATIVE SOCIETY, THE ASS ESSEE SHOULD BE ALLOWED DEDUCTION U/S 80P(2)(A)(I) OF THE ACT. FOR AVAILING OF THE DEDUCTION 80P(2)(A)(I), IT IS NECES SARY THAT ALL THE EMPLOYEES MUST BE THE MEMBERS OF THE CO-OPERATIVE S OCIETY. THE ASSESSEE IS ALSO DIRECTED TO SUBMIT THE NECESSA RY EVIDENCE IN THIS REGARD AS MAY BE DESIRED BY THE ASSESSING O FFICER TO PROVE HIS CLAIM THAT ALL THE EMPLOYEES ARE THE MEMB ERS OF THE CO-OPERATIVE SOCIETY. THUS, THE APPEAL FILED BY TH E ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. 5.1 KEEPING IN VIEW THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN THE INTEREST OF JUSTICE AND FAIR PLAY TO BOTH THE PARTI ES AND KEEPING IN VIEW THE EARLIER ORDER OF THE TRIBUNAL DATED 11/11/2016, I A M OF THE VIEW THAT THE MATTER BE RESTORED TO THE FILE OF THE ASSESSING OF FICER WITH THE SAME DIRECTIONS AS CONTAINED IN THE TRIBUNAL ORDER DATED 11/11/2016. THUS, THE APPEAL FILED BY THE ASSESSEE STANDS ALLOWED FOR STA TISTICAL PURPOSES. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. (ORDER PRONOUNCED IN THE OPEN COURT ON 31/07 /2019) SD/. ( T. S. KAPOOR ) ACCOUNTANT MEMBER DATED:31/07/2019 *SINGH COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. CONCERNED CIT 4. THE CIT(A) 5. D.R., I.T.A.T., LUCKNOW